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Canadian investors are still looking for a deal on the TSX today and yet that is becoming much more difficult to achieve, especially considering that the TSX today has recently surpassed all-time highs. However, there are certainly some winners to consider. In fact, today we're going to delve into one that I would pick without hesitation and keep forever.
Pan American Silver
Mining stocks have been very successful lately. However, this has left many investors perhaps fearful that they have missed out on growth. However, I would say that now is the best opportunity, especially for a company like Pan American Silver (TSX:PAAS).
PAAS stock is one of the largest primary producers of silver in the world. It has a diversified portfolio of assets located in Mexico, Peru, Bolivia and Argentina. The company also produces and sells gold, zinc, lead and copper. Pan American Silver operates several mines and development projects, and has a history of consistent production and exploration activities in the precious metals sector.
In fact, despite missing earnings estimates in recent quarters, PAAS's stock price has risen since it reported its recent earnings. So let's look at what's been happening and if momentum is underway.
Quarterly performance
Investors can look at an earnings report and see year-over-year results and believe that's the important point to focus on. However, I would argue that quarterly reports are much more important. This can show momentum for a company, even a company like PAAS stock.
In that case, the company did have less momentum in recent quarters. The second quarter produced 6.02 million ounces of silver and a record 248.2 thousand ounces of gold, with revenues of $639.9 million. In the third quarter, production fell slightly to 5.7 million ounces of silver and 244.2 thousand ounces of gold, with revenues of $616.3 million. In the fourth quarter, it reached 4.8 million in silver and 267.8 thousand in gold, with a record income of 669.3 million dollars.
Why did stocks rise?
In short, stocks rose due to the outlook and the price of silver and gold. PAAS stock saw its results fall below estimates. However, shares rose when the company reported a strong outlook for 2024. In fact, it is so confident in its future that the company reported a buyback program.
PAAS Stock announced that it will purchase up to 18,232,990 of its common shares, up to 5% of its issued and outstanding shares. Meanwhile, you see your bottom line and production improving, especially with silver and gold in such high demand.
Silver production should reach between 14.9 and 16.1 million ounces, with a goal between 95 and 117 thousand ounces. However, this should increase soon as the company announced additional high-grade drilling results from its La Colorada Skarn project. The company expects an update sometime in the summer.
Bottom line
The future looks bright for PAAS stock, bright even, with more demand and more production underway. After a year of difficulties, the company has taken solid measures to reduce losses and increase production. So, with the stock down 48% from all-time highs and a 2.2% dividend yield, it's a drool-worthy stock for investors.
